European stocks may open a tad lower on Wednesday, with the Fed’s monetary policy announcement along with Fed Chair Powell’s post-meeting press conference likely to be in the spotlight.
Amid talk of policy tightening, investors are waiting to see if the Fed will signal a faster path toward policy normalization than previously expected.
Traders will be paying close attention to any changes to the Fed’s statement as well as any revisions to the central bank’s forecasts for the economy, inflation and interest rates.
Some traders are hoping Fed Chair Jerome Powell will address the recent spike in treasury yields in his post-meeting press conference.
The Bank of England meets on Thursday, while the Bank of Japan wraps up a policy review on Friday.
Asian stocks remain broadly lower in cautious trade after 10-year U.S. Treasury yields ticked up overnight on optimism over the economy’s post-pandemic recovery.
Gold held below two-week high on a stronger dollar while oil prices slipped for a fourth day despite industry data showing a surprise drop in U.S. crude stocks.
Final consumer price data from euro area and new car registration figures from Europe are due later in the session, headlining a light day for the European economic news.
U.S. stocks ended mixed overnight as retail sales and industrial production data disappointed and Treasury yields saw considerable volatility ahead of the Fed’s guidance on inflation and interest rates.
The Dow dropped 0.4 percent and the S&P 500 dipped 0.2 percent while the tech-heavy Nasdaq Composite edged up 0.1 percent.
European stocks rose on Tuesday as an upbeat forecast from German carmaker Volkswagen outweighed broad worries about the rollout of Covid-19 vaccines in Europe.
The pan European Stoxx 600 gained 0.9 percent. The German DAX climbed 0.7 percent, France’s CAC 40 index inched up 0.3 percent and the U.K.’s FTSE 100 added 0.8 percent.
European Shares Seen Tad Lower Ahead Of Fed Verdict
2021-03-17 05:45:36
